Input credit
This query is : Resolved
16 August 2011
Hi Sir,
can dealer sell goods less than their cost?
for example:
in a period dealer's purchase is 100000(Rs100x1000/Pcs)
and he claimed ITC 4762.
& he sell (Rs 80x1000/pcs) and discount+his margin amount claimed from supplier.
than what he should be do regarding ITC.
any curricular or ruling is available on it for UPVAT?
can dealer sell goods less than their cost?
for example:
in a period dealer's purchase is 100000(Rs100x1000/Pcs)
and he claimed ITC 4762.
& he sell (Rs 80x1000/pcs) and discount+his margin amount claimed from supplier.
than what he should be do regarding ITC.
any curricular or ruling is available on it for UPVAT?
21 August 2011
Mr.Sachin Kumar,
You can sell any goods at a price less than their cost.It happens in many goods where prices are fluctuating.Silk,gold ,silver,arecanut,copra etc,there are many goods whose prices change and one has to sell only at the prevailing market prices.So the input tax can be higher than the output tax,and no one can object to it.This is a common rule everywhere.
MJK
You can sell any goods at a price less than their cost.It happens in many goods where prices are fluctuating.Silk,gold ,silver,arecanut,copra etc,there are many goods whose prices change and one has to sell only at the prevailing market prices.So the input tax can be higher than the output tax,and no one can object to it.This is a common rule everywhere.
MJK
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